Fiduciary Liability Insurance

Your company provides a retirement and health plan for your employees, and you help manage that plan. If this is the case, you may need fiduciary liability insurance. This type of coverage protects you as you perform your fiduciary duties.

You have several important responsibilities in your role. You have the task of selecting advisors for the plan as well as investments to offer. You must minimize expenses so employees retain more earnings. You are required to follow all documents related to the offered plan to the last letter. Your job is to act on behalf of the employees with their best interests in mind rather than for the company.

With all this responsibility comes the risk of making a mistake. It may be a wrong decision, negligence on your behalf or delaying action. If the result costs your employees money in the plan, you could be held liable.

Protection with Fiduciary Liability Insurance

Financial institutions and nonprofit organizations may need this type of coverage. Other private and public companies will also require a policy if they offer either retirement benefits or a health plan. Anytime you offer an employee benefit plan, you increase your risk.

Fiduciary liability insurance may be purchased as part of a professional liability policy or it may be in addition. Anytime your job impacts the financial interest of others, such as in wages and salaries, benefits or even maintaining an exempt status with the IRS, you carry a financial risk.

The amount of coverage you need may vary based on your business and the amount of funds being handled. You should talk to a commercial insurance agent who can help you determine the right amount and type of coverage for your business. Just remember that a lawsuit can be costly and can hurt your business, so make sure you carry enough coverage to protect your company and assets.

If you’re interested in learning more about fiduciary liability insurance or purchasing a policy, contact us today.